Angola ships first LNG cargo from flagship project

Originally the plan had been to deliver the LNG from the plant to the US market, but the shale gas boom in the country has forced the company to look for new customers in Asia and Europe. Angola LNG said it has executed a large number of agreements with energy companies across the world.

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BY SARAH KENT

LONDON -- Angola shipped its first cargo of LNG following
delays of more than a year to the country's flagship LNG
project, Angola LNG said Monday in a press statement.

The first cargo was bought by state oil company, Sonangol,
and is being shipped to Brazil, the company said.

The venture, a 5.2 MMtpa LNG project led by Sonangol and Chevron.
was supposed to begin commercial shipments at the beginning of
2012. However, the start of exports was delayed several
times.

In addition to the delays, the large LNG project has faced challenges due to
the growth of the indigenous natural gas market in the US.

Originally the plan had been to deliver the LNG from the
plant to the US market, but the shale gas boom in the country
has forced the company to look for new customers in Asia and Europe.

Angola LNG said it has executed a large number of master LNG
sale and purchase agreements with energy companies across the
world, "providing Angola LNG with a robust and diverse
portfolio of customers."

It is also negotiating further agreements, it said.

"Angola LNG's vision is to be a reliable and competitive
supplier, a strong community partner, and a role model for the
economic development of Angola." said Antonio Orfao, Chairman
of Angola LNG.

"The project provides a solution to minimize flaring and environmental pollution by gathering
associated gas from Angola's offshore oil fields to provide
clean and reliable energy to our customers and a return on
investment for our shareholders" he added.

BP, Eni,
and Total each hold a stake of 13.6% in the project, while Sonangol holds 22.8%
and Chevron 36.4%.

Dow Jones Newswires

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